If my home gets sheriff sale would the person bidding have to pay lien first its $47000 in order to get clear title? The IRS was also served foreclosure documents but they said they would not release the lien . The foreclosure was dismissed w/o prejudice . I was considering a short sale but my lender said no because the IRS would not release it,
Chapter 13 Bankruptcy Attorney
IRS liens will pass with the transfer of title. In reality, no title company would insure title without a satisfaction from the IRS. If the house is sold at a sheriff sale, the bidder would take subject to the IRS.
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Real Estate Attorney
I agree with the previous answer and the liens and mortgage will need to be settled in order of priority.
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I agree with my colleague. You would need to reach a settlement with the IRS prior to or as part of a sale.
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First of all, with no pending foreclosure case (you say it was "dismissed w/o prejudice") there can be no judicial sale. Consider filing a Chapter 13 bankruptcy case. You may be able to get the IRS to come to the table if you're in Chapter 13. Consult with a PA bankruptcy attorney to get more reliable advice.
This answer does not constitute specific legal advice or create an attorney-client relationship between Glenn R. Reiser, Esq. or LoFaro & Reiser, LLP and the individual or company whose posts we are responding to.
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